Tokyo stocks traded with an upward bias on April 7th, with the Nikkei Average briefly approaching the 35,000 level in the morning before stalling as bulls and bears clashed.

The Nikkei Stock Average closed at 53,429.56, up \15.88 from the previous session, marking its third consecutive daily gain. Estimated trading volume on the Prime Market came in at 1.83 billion shares, with an estimated trading value of \5,736.2 billion. Advancing issues numbered 1,129, against 411 decliners and 37 unchanged.

In the morning session, futures-led buying drove the index above 53,900 at one point ? a gain of over \500 from the prior close. However, once the initial rally faded, near-term profit-taking emerged and the market shifted into a consolidation phase. With U.S. President Trump having set a deadline for a major military strike against Iran for the nighttime hours of April 7th Eastern Time ? corresponding to 9:00 a.m. Japan Standard Time on April 8th, coinciding with the Tokyo market open ? investors were reluctant to make aggressive directional bets ahead of the outcome. That said, selling pressure was equally restrained, and the market showed resilience in the afternoon, with index-linked futures buying returning the index to positive territory in the latter part of the session. Concerns over inflationary pressures, with crude oil futures climbing toward the $115 per barrel level amid continued yen weakness, further dampened buying appetite. Trading value remained in the \5 trillion range for the third consecutive session.

On the individual stock front, Kioxia Holdings posted by far the highest trading value and attracted strong buying interest, while Advantest <6857> also performed solidly. JX Advanced Metals <5016> showed firm price action. Defense-related names including Mitsubishi Heavy Industries <7011>, IHI <7013>, and Kawasaki Heavy Industries <7012> demonstrated broad-based strength. Intermestic attracted buying, and Torex Semiconductor <6616> also traded higher. Asteria <3853> rose, and Nitto Boseki <3110> also drew buying interest. Sanrio <8136> gained ground, and Tokyo Keiki <7721> also moved higher.

On the downside, Disco <6146> fell sharply. Wire and cable stocks came under pressure, with Furukawa Electric <5801>, Fujikura <5803>, and Sumitomo Electric Industries <5802> all posting losses, while Mitsui Mining & Smelting <5706> also declined. Inpex <1605> was similarly lackluster. Sakura Internet <3778> saw profit-taking, Archion plunged, and Tokyo Steel Manufacturing <5423> also posted notable declines. Marumae <6264>, Union Tool <6278>, and W-Scope <6619> also dropped sharply.

Source: MINKABU PRESS